1. Lean Production Strategy Lean Manufacturing Strategy

2. Lean Production/Lean Manufacturing
JIT Production
Lean Production
Lean Manufacturing
Toyota Production System (TPS)
Pull system - Kanban System
The first implementation - Toyota Motor Company, Mr Taiichi Ohno,
50-ties of last century

3. Lean Manufacturing
Lean Manufacturing – a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity (p = outputs/inputs)
Lean Manufacturing allows to produce more using less resources – more products with less materials, labour, time and energy
GM FRAMINGHAM
TOYOTA TAKAOKA
Assembly hours per vehicle
40,7 hours
16 hours
Defects per 100 vehicles
130 defects
45 defects
Average inventory leveles
2 weeks
2 hours
In 80ties and 90 ties, the statistics in Polish plants where much more worse then these in GM factory at the table
In 80ties and 90 ties, the statistics in Polish plants where much more worse then in GM factory at the table

4. Lean Manufacturing dates
In early 1950s Toyota Motor Company starts to implement new approach to manufacturing, called today TPS – Toyota Production System
In 1970s – some western companies start to recognize the specifics of TPS. The new production strategy was called Just In Time (JIT)
In 1980s – several successful implementation of JIT system in western companies. JIT strategy had started to be obligatory part of production management topics in university textbooks
In 1991 „The Machine that Changed the World” was published by Womack, Jones and Roos. They introduced there the term „lean manufacturing”
In 1980s and 1990s JIT/Lean Manufacturing was started to be implemented in all automotive companies in the world and is developed there until now. Also in other industries (as electronic, home appliances industries) Lean Manufacturing is successfully developed.
In foundation of The Lean Enterprise Institute in USA
In 1998 „Learning to see. Value Stream Mapping to Create Value and Eliminate Muda” was published by Rother and Shook
In 2004 Liker published the book The Toyota Way: 14 Management Principles
(it has no connection with anorection)

5. Lean Production Goals
To satisfy customer make and delivering right product, in right quantity, with right quality, in right time and to right place
Goals of Lean Production
Zero inventory
Zero defects
Zero breakdowns (zero overdue supplies)
Zero set up times
Zero transportation
Zero lead times (value added time = lead time)
Lot size = 1

6. Principles of Lean/JIT Production (Robert W. Hall – Zero Inventory)
Make what customer wants
Make how many customer wants
Make immediately when requirements appears
Make with perfect quality
Make without waste
Make with people involvment and development

7. Lean Manufacturing perspective on waste
A key principle of the LM philosophy is never ending effort to eliminate waste
What is waste? Waste is performing any activity that does not add value to the product.
Value is everything for what a customer is ready to pay.
Major sources of waste (Muda in Japanese):
Overproduction
Waiting
Transportation
Inappropriate processes
Inventory
Unnecessary motion
Defects (creating products that require rework or must be scrapped)
Underutilization a knowledge of employees

8. WASTE MUDA Waiting Defects Overproduction Transportation Inventory
Inappropriate processing
Inventory
Unnecessary motion

9. Overproduction Produce more then the next process needs
What is overproduction?
Produce more then the next process needs
Produce erlier then the next process needs
Produce quicker then the next process
Waiting
Inventory
Handling
Defects
Extra work
Surface

10. The objectives of lean manufacturing
Zero inventory
Zero machine break down
Zero defects
Zero transportation
Zero set up time
Lot size equal to one
Value adding time equal to total lead time
What percentage of lead time (cycle time) has value adding time in a typical enterprise ?!
(<1%, 5%, 10%, 20%, 40%, 60%, 80%)
Zero waste in a process means: Value adding time = Total lead time
Total lead time of tin of Coca Cola is 300 days starting from mines in Australy (row materials) and ending in Carefour Hiper market in Roanne. Value adding time is only 3 houres.

11. The Material Flow Cycle
Raw materials - Wood
Final product - Boards

12. Process Efficiency Indicator
- Adding value activity
- Transportation
- Inventory
- Products control
- No action, waiting
( )
Added value time
PEI = %
Total cycle time
Operations management objective: increase PEI
How to increase PEI ?
Reduce and eliminate no adding value activities

13. Traditional and Lean approach in improving productivity
Lead time
Adding value
Waste
Traditional approach:
- work harder, longer and quicker
- add devices and people
Lean/Kaizen:
- improve value stream to eliminate waste

14. Elements of Lean Manufacturing System/TPS (Toyota House)
JUST IN TIME
Takt time & One piece flow
Kanban
SMED
Pull system
Integrated logistics
JIDOKA
Andon
Poka – yoke
TPM
5 WHY
CONTINOUS IMPROVEMENT
Waste elimination
5 S
Problem solving, 5”WHY”
Genchi genbutsu
PEAPLE & TEAM WORK
HEIJUNKA
VISUAL MANAGEMENT
WORK STANDARISATION
THE HIGEST QUALITY, THE LOWEST COST, THE SHORTEST LEAD TIME, THE HIGEST WORK SAFETY, THE HIGEST MORALE
GENERAL CONCEPT OF TOYOTA WAY

15. Kanban System (one kanban card system))
Work center 2
Work center 1 KP
Production Kanban
Container with kanban

16. Kanban System (two Kanban card system)
Transfer kanban card board
Transfer Kanban
Work center 2 KT KP
Work center 1
Production Kanban
Kanban container
Production Kanban card board 1 2
Floor space for work center 2 containers
Floor space for work center 1 containers

17. Kanban card

18. Lean Manufacturing and inventory
Inventory level
Inappropriate Lay out
Machines' breakdown
Unsynchronized production
Wrong work methods
Inflexible employees
Long set up times
Long set up times
Defects

19. Value stream with constraints
Customer
Manufacturing
Tooling
Assembly
Final products
Machine’s
Set up
Machine‘s breakdown
Cycle time
Supplier

20. Lean value stream after waste and constraints reduction
Supplier
Customer
A material flow is smooth and simplified

21. Principles of Lean Implementation
Specify value from the standpoint of the end customer by product family.
Identify the value stream for each product family, eliminating whenever possible those steps that do not create value.
Create continuous flow - make the value creating steps occur in tight sequence so the product will flow smoothly toward the customer
Pull the value. Let customers pull value from the next upstream activity.
Cotinuous improvement. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.

22. Steps of Lean Manufacturing implementation
Principles of Lean
The five-step thought process for guiding the implementation of lean techniques is easy to remember, but not always easy to achieve:
Specify value from the standpoint of the end customer by product family.
Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value.
Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer.
As flow is introduced, let customers pull value from the next upstream activity.
As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.

23. Value stream mapping
“Whenever there is a product for a customer, there is a value stream. The challenge lies in seeing it.” -Learning to See, Lean Enterprise Institute

24. Designing the future value stream:
Value stream mapping
Value stream mapping is an inherent method of Lean implementation in an enterprise
Designing the future value stream:
Identify families of products
Identify customer value.
Create a current state value stream map. Recognition of waste
Create a future state value stream map

25. Current state value stream map

26. Future state value stream map